1.This Act may be cited as the
Rural Energy Investment Act of
2012
.
2.Congress finds that—
(1)production of
energy from domestic sources offers considerable economic and energy security
benefits to the United States, including enduring and desirable jobs;
(2)the agricultural
and forestry sectors of the United States offer significant potential for
production of renewable energy;
(3)both renewable
energy production and adoption of energy efficiency offer considerable
environmental benefits; and
(4)investments in
energy efficiency projects and renewable energy systems in rural areas of the
United States provide very significant energy security, economic, and
environmental benefits to the entire United States in addition to the rural
area benefits.
3.Section 9001 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101) is amended—
(1)in paragraph (6)—
(A)in subparagraph
(C), by striking or
at the end;
(B)in subparagraph
(D), by striking the period at the end and inserting ; or
;
and
(C)by adding at the
end the following new subparagraph:
(E)renewable
chemicals.
;
(2)in paragraph (7)(A), by striking and
biobased products
and inserting , renewable chemicals, or
biobased products
;
(3)in paragraph (11), by inserting
(including a renewable chemical)
after material or
compound
;
(4)by redesignating
paragraphs (13) and (14) as paragraphs (14) and (15), respectively; and
(5)by inserting after
paragraph (12) the following new paragraph:
(13)The term
renewable chemical means a monomer, polymer, plastic, formulated
product, or chemical substance produced from renewable
biomass.
.
4.Section 9002 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is
amended—
(1)in subsection
(a)—
(A)in paragraph (3),
by adding at the end the following new subparagraphs:
(F)Biobased product
designationsNot later than 1 year after the date of enactment of
this subparagraph, the Secretary shall—
(i)increase the
number of categories of biobased products designated and individual biobased
products eligible for preferred purchasing by 50 percent;
(ii)begin to
designate intermediate ingredients or feedstocks in the guidelines issued under
this paragraph; and
(iii)develop a
recommendation for the designation of complex and finished biobased products in
those guidelines.
(G)Changes in
procurement mechanisms
(i)Electronic
product procurement catalogsThe Secretary shall work with
relevant officials in agencies that have electronic product procurement
catalogs to identify and implement solutions to increase the visibility of
biobased and other sustainable products.
(ii)Agency-specific
product specifications
(I)Not later than 1 year after the date of enactment of this
subparagraph and every 4 years thereafter, the Secretary, in coordination with
other appropriate officials, shall work with the senior sustainability officer
of each agency that has established agency-specific product specifications to
review and revise the product specifications to ensure that, to the maximum
extent practicable, the product specifications—
- (aa)require the use
of sustainable products, including biobased products designated in accordance
with this section; and
- (bb)do
not contain any language prohibiting the use of biobased products.
(II)Results
of the reviews conducted under subclause (I) shall be reported annually to the
Office of Management and Budget, the Office of Science and Technology Policy,
and the appropriate committees of Congress.
(H)
(i)Not later than 1 year after the date of enactment of this
subparagraph, the Secretary and the Federal Acquisition Regulatory Council
shall jointly propose an amendment to the Federal Acquisition Regulation to
require reporting of biobased product purchases, to be made public on an annual
basis.
(ii)After the promulgation of the proposed amendment
described in clause (i), the Secretary, in consultation with the Chief
Acquisition Officers Council, shall develop and make available a reporting
template to facilitate the annual reporting
requirement.
;
and
(B)by adding at the
end the following new paragraph:
(5)The
Secretary may take such action as the Secretary determines to be
necessary—
(A)to determine the
compliance rate among Federal agencies in buying designated biobased products;
and
(B)to determine
whether vendor and contractor claims about biobased products meeting item
designation definitions and minimum required biobased content are
accurate.
;
(2)in subsection
(b)—
(A)in paragraph
(2)(B)—
(i)in
clause (ii), by striking and
at the end;
(ii)by
redesignating clause (iii) as clause (iv); and
(iii)by
inserting after clause (ii), the following new clause:
(iii)encourage the purchase of products that
apply an innovative approach to growing, harvesting, procuring, processing, or
manufacturing biobased products regardless of the date of entry of the products
into the marketplace.
;
(B)in paragraph
(3)—
(i)by
striking (3) Use of
label.—The Secretary
and inserting the following:
(3)
(A)The
Secretary
;
and
(ii)by
adding at the end the following new subparagraph:
(B)The Secretary may carry out such auditing and
compliance activities as the Secretary determines to be necessary to ensure
compliance with subparagraph (A), including the imposition of a civil penalty
of not more than $10,000 on a person who misuses the label and, after receiving
a notice of violation, fails to take action to correct the misuse described in
the notice.
;
and
(C)by adding at the
end the following new paragraphs:
(4)Forestry
Products Laboratory coordinationIn determining which products may qualify
to use a label under paragraph (1), the Secretary, in consultation with the
Forest Products Laboratory, shall—
(A)review and approve applications for
designation as biobased products submitted by vendors or manufacturers of
forest-related products;
(B)expedite the approval of applications for
designation as biobased products submitted by producers of innovative
forest-related products resulting from technology developed by the Forest
Products Laboratory or partners of the Laboratory; and
(C)provide appropriate technical assistance to
applicants, as determined by the Secretary.
(5)Complex and
finished productsNot later than 1 year after the date of
enactment of this paragraph, the Secretary shall develop a recommendation for
labeling complex and finished
products.
;
(3)by redesignating
subsections (d) through (h) as subsections (e) through (i),
respectively;
(4)by inserting after
subsection (c) the following new subsection:
(d)Outreach,
education, and promotion
(1)The Secretary shall carry out a program of outreach,
education, and promotion activities intended to increase knowledge, awareness,
and benefits of biobased products.
(2)In carrying out this subsection, the Secretary, at a
minimum, shall—
(A)not later than 1
year after the date of enactment of this paragraph, update all existing
BioPreferred and related sustainable acquisition training materials of the
Department;
(B)work cooperatively
with the senior sustainability officers and chief acquisition officers of
Federal agencies to immediately implement such BioPreferred program agency
education and outreach programs as are necessary to meet the requirements of
this section;
(C)work actively with
groups that support employment for the blind or disabled, such as the Committee
for Purchase From People Who Are Blind or Severely Disabled, to promote
education and outreach regarding BioPreferred AbilityOne products to—
(i)program,
technical, and contracting personnel; and
(ii)Federal agency
purchase card holders;
(D)conduct consumer
education and outreach (including consumer and awareness surveys);
(E)conduct outreach
to and support for State and local governments interested in implementing
biobased purchasing programs;
(F)partner with
industry and nonprofit groups to produce educational and outreach materials and
conduct educational and outreach events;
(G)sponsor special
conferences and events to bring together buyers and sellers of biobased
products; and
(H)support pilot and
demonstration
projects.
;
(5)in subsection (h)
(as redesignated by paragraph (3)), by adding at the end the following new
paragraph:
(3)Jobs creation
research and reportNot later than 2 years after the date of
enactment of this paragraph, the Secretary shall carry out a study, and submit
to the President and the appropriate committees of Congress a report, on job
creation and the economic impact associated with the biobased product industry,
including—
(A)the number of jobs
in the United States originating from the biobased product industry annually
over the preceding 10 years, including the job changes in specific
sectors;
(B)the dollar value
of the domestic biobased products industry at the time of the report, including
intermediates, feedstocks, and finished products, but excluding
biofuels;
(C)a forecast for
biobased job creation potential over the next 10 years;
(D)a forecast for
growth in the biobased industry over the next 10 years; and
(E)jobs data for both
biofuels and biobased products, with data generated separately for each
category.
;
and
(6)in subsection (i)
(as redesignated by paragraph (3))—
(A)in paragraph
(1)—
(i)in
subparagraph (A), by striking and
at the end;
(ii)in
subparagraph (B), by striking the period at the end and inserting ;
and
; and
(iii)by
adding at the end the following new subparagraph:
(C)$4,000,000 for
each of fiscal years 2013 through 2017.
;
and
(B)in paragraph (2),
by inserting and $4,000,000 for each of fiscal years 2013 through
2017
before the period at the end.
5.Section 9003 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is
amended—
(1)in subsection
(b)(2), by inserting or a renewable chemical
after
biofuel
each place it appears in subparagraphs (A) and
(B);
(2)in subsection
(c)(1), by inserting or renewable chemicals
after
biofuels
;
(3)in subsection
(d)(2)(C)—
(A)in clause (i), by
inserting or renewable chemical
after biofuel
;
and
(B)in clause (iii),
by inserting or renewable chemicals
after
biofuels
;
(4)in subsection
(e)(1)(C)—
(A)in clause (i), by
inserting or renewable chemical
after biofuel
;
and
(B)in clauses (iii)
and (vii), by inserting or renewable chemicals
after
biofuels
each place it appears; and
(5)in subsection
(h)—
(A)in paragraph
(1)—
(i)in subparagraph
(A), by striking and
at the end;
(ii)in subparagraph
(B), by striking the period at the end and inserting ; and
;
and
(iii)by adding at the
end the following new subparagraph:
(C)$75,000,000 for
each of fiscal years 2013 through 2017.
;
and
(B)in paragraph (2),
by inserting and $75,000,000 for each of fiscal years 2013 through
2017
before the period at the end.
6.Biodiesel fuel
education programSection 9006
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106) is
amended by striking subsection (d) and inserting the following new
subsection:
(d)
(1)Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $1,000,000 for each of fiscal
years 2013 through 2017, to remain available until expended.
(2)In addition to any other funds made available to carry
out this section, there is authorized to be appropriated to carry out this
section $1,000,000 for each of fiscal years 2013 through
2017.
.
7.Rural Energy for
America ProgramSection 9007
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is
amended—
(1)by redesignating
subsections (a) through (g) as subsections (b) through (h),
respectively;
(2)by inserting
before subsection (b) (as so redesignated), the following new
subsection:
(a)Agricultural
producer definedIn this
section, the term agricultural producer
includes rural and
non-rural agricultural
producers.
;
(3)in subsection (d) (as redesignated by
paragraph (1))—
(A)by striking
paragraph (1) and inserting the following new paragraph:
(1)Loan guarantee
and grant program
(A)In addition to any similar authority, the Secretary shall
provide loan guarantees and grants to agricultural producers and rural small
businesses—
(i)to
purchase renewable energy systems, including—
(I)systems that may
be used to produce and sell electricity, such as for agricultural, and
associated residential, purposes; and
(II)unique components
of renewable energy systems; and
(ii)to make energy
efficiency improvements.
(B)Tiered
application process
(i)In providing loan guarantees and grants under this
subsection, the Secretary shall use a 3-tiered application process that
reflects the sizes of proposed projects in accordance with this
subparagraph.
(ii)The Secretary shall establish a separate application process
for projects for which the cost of the activity funded under this subsection is
not more than $80,000.
(iii)The Secretary shall establish a separate application process
for projects for which the cost of the activity funded under this subsection is
greater than $80,000 but less than $200,000.
(iv)The Secretary shall establish a separate application process
for projects for which the cost of the activity funded under this subsection is
equal to or greater than $200,000.
(v)The Secretary shall establish an application, evaluation,
and oversight process that is most simplified for tier I projects and more
comprehensive for each subsequent
tier.
;
(B)in paragraph
(3)—
(i)in
subparagraph (A), by inserting in an amount not to exceed $100,000 per
grant
after in the form of grants
; and
(ii)by
striking subparagraph (C);
(C)in paragraph
(4)(C), by striking 75 percent of the cost
and inserting
all eligible costs
; and
(D)by adding at the
end the following new paragraph:
(5)In
carrying out this section, the Secretary shall not require a second meter for
on-farm residential portions of rural projects connected to the
grid.
;
(4)in subsection (g) (as redesignated by
paragraph (1))—
(A)by striking
Not later
and inserting the following:
(1)Not later
;
and
(B)by adding at the
end the following new paragraph:
(2)Not later than 4 years after the date of enactment of this
paragraph, the Secretary shall submit to Congress a report on activities
carried out under this section, including the outcomes achieved by projects
funded under this section.
;
and
(5)in subsection (h) (as redesignated by
paragraph (1))—
(A)in paragraph
(1)(D), by striking fiscal year 2012
and inserting each
of fiscal years 2012 through 2017
; and
(B)in paragraph (3),
by inserting and $70,000,000 for each of fiscal years 2013 through
2017
before the period at the end.
8.Biomass research
and developmentSection 9008
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8108) is
amended—
(1)by striking
biofuels and
each place it appears in subsections (b), (c)(3),
(d)(2)(A), (e), and (g)(2) and inserting biofuels, renewable chemicals,
and
;
(2)in subsection
(e)—
(A)in paragraph
(2)—
(i)in subparagraph
(A)—
(I)by striking
at prices competitive with fossil fuels
and inserting and
biobased products
; and
(II)by inserting
and
after the semicolon at the end;
(ii)by striking
subparagraph (B);
(iii)by redesignating
subparagraph (C) as subparagraph (B); and
(iv)in subparagraph
(B) (as so redesignated), by inserting renewable chemicals,
after bioenergy,
;
(B)in paragraph
(3)—
(i)in subparagraph
(B), in the subparagraph heading, by inserting , renewable
chemicals,
after Biofuels
; and
(ii)by striking
subparagraph (C);
(C)by striking
paragraph (4); and
(D)by redesignating
paragraphs (5) and (6) as paragraphs (4) and (5), respectively; and
(3)in subsection
(h)—
(A)in paragraph
(1)—
(i)in subparagraph
(C), by striking and
at the end;
(ii)in subparagraph
(D), by striking the period at the end and inserting ; and
;
and
(iii)by adding at the
end the following new subparagraph:
(E)$30,000,000 for
each of fiscal years 2013 through 2017.
;
and
(B)in paragraph (2),
by inserting and $30,000,000 for each of fiscal years 2013 through
2017
before the period at the end.
9.Rural energy
self-sufficiency initiativeSection 9009(d) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8109(d)) is amended by inserting
and $10,000,000 for each of fiscal years 2013 through 2017
before the period at the end.
10.Biomass crop
assistance program
(a)Section 9011(a) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8111(a)) is amended—
(1)in paragraph (4)(B)—
(A)in clause (i), by
striking or
at the end;
(B)in clause
(ii)—
(i)by
striking has the potential to become invasive or noxious
and
inserting species or varieties of plants that credible risk assessment
tools or other credible sources determine are potentially invasive
;
and
(ii)by
striking the period at the end and inserting ; or
; and
(C)by adding at the
end the following new clause:
(iii)algae.
;
(2)in paragraph (5)(B), by striking clauses
(iv) and (v) and inserting the following new clauses:
(iv)land enrolled in the environmental easement
program established under chapter 3 of subtitle D of such title (16 U.S.C. 3839
et seq.); or
(v)land enrolled in
the programs described in clauses (iii) and (iv) under a contract that expires
at the end of fiscal year ___.
;
(3)in paragraph
(6)—
(A)by striking
subparagraph (A) and inserting the following new subparagraph:
(A)The term
eligible material means the following materials:
(i)Renewable biomass material harvested
directly from the land, including crop residue from any crop that is eligible
to receive payments under title I of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8701 et seq.).
(ii)Material that is collected or harvested by
the owner of such material—
(I)directly from the National Forest System,
Bureau of Land Management land, non-Federal land, or land owned by an
individual Indian or Indian tribe that is held in trust by the United States
for the benefit of the individual Indian or Indian tribe or subject to a
restriction against alienation imposed by the United States; or
(II)in a manner that is consistent with a
conservation plan, a forest stewardship plan, or a plan that the Secretary
determines is equivalent to a conservation plan or a forest stewardship plan
and consistent with Executive Order 13112 (64 Fed. Reg. 6183; relating to
invasive species).
(iii)In the case of
woody material, material that is produced on land other than contract acreage
that—
(I)is a byproduct of a preventative treatment
that is removed to reduce hazardous fuel or to reduce or contain disease or
insect infestation; and
(II)if harvested from Federal land, is
harvested in accordance with section 102(e) of the Healthy Forests Restoration
Act of 2003 (16 U.S.C. 6512(e)).
(iv)Material that is delivered to a qualified
biomass conversion facility to be used for heat, power, biobased products,
research, or advanced biofuels.
;
and
(B)in subparagraph
(B)—
(i)in
clause (iii), by striking or
at the end;
(ii)in
clause (iv), by striking the period at the end and inserting ;
or
; and
(iii)by
adding at the end the following new clause:
(v)bagasse.
;
and
(4)by adding at the
end the following new paragraph:
(9)Socially
disadvantaged farmer or rancherThe term socially disadvantaged
farmer or rancher
has the meaning given such term in section 2501(e) of
the Food, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)).
.
(b)Section 9011(c) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8111(c)) is
amended—
(1)in paragraph
(2)—
(A)in subparagraph
(A), by striking clause (iv) and inserting the following new clause:
(iv)any other information about the biomass
conversion facility or proposed biomass conversion facility that the Secretary
determines necessary for the Secretary to be reasonably assured that the plant
will be in operation by the date on which the eligible crops are ready for
harvest.
;
and
(B)in subparagraph
(B)(ix), by striking information
and all that follows through
the period and inserting information that the Secretary determines to be
necessary.
;
(2)in paragraph
(3)—
(A)in subparagraph
(B)—
(i)in
clause (iii)—
(I)in subclause (I),
by striking or
at the end;
(II)in subclause
(II), by striking or an equivalent; and
at the end and inserting
; or
; and
(III)by adding at the
end the following new subclause:
(III)a plan that is equivalent to a conservation
plan or a forest stewardship plan; and
;
and
(ii)in
clause (iv), by striking the Secretary
and all that follows
through the period and inserting that the Secretary determines to be
necessary.
; and
(B)in subparagraph
(C), in the matter preceding clause (i), by striking up to
and
inserting not more than
; and
(3)in paragraph
(5)—
(A)in subparagraph
(B)—
(i)by
redesignating clauses (i), (ii), and (iii) as subclauses (I), (II), and (III),
respectively, and moving the margins of such subclauses two ems to the
right;
(ii)by
striking (B) Amount of establishment
payments.—The amount
of
and inserting the following:
(B)Amount of
establishment payments
(i)Except as provided in
clause (ii), the amount of
;
(iii)in clause (i) (as designated by clause
(ii)), by striking up to 75 percent
and inserting not
more than the lesser of $500 per acre or 75 percent
; and
(iv)by
adding at the end the following new clause:
(ii)Socially
disadvantaged farmers or ranchersThe limitation on the amount of an
establishment payment under clause (i) shall apply in the case of a socially
disadvantaged farmer or rancher in the same manner as such limitation applies
to any farmer or rancher under such clause except that the limitation on the
costs of establishment applicable to a socially disadvantaged farmer or rancher
shall be not more than the lesser of $750 per acre or 85 percent of such
costs.
; and
(B)in subparagraph
(C)(ii), by striking subclause (V) and inserting the following new
subclause:
(V)the Secretary determines a reduction is
necessary to carry out this
section.
.
(c)Assistance with
collection, harvest, storage, and transportationSection 9011(d) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8111(d)) is amended—
(1)in paragraph
(1)(B), by inserting before the period at the end , regardless of
whether the eligible material is produced on contract acreage
;
and
(2)in paragraph
(2)(B)—
(A)by striking
rate of $1
and inserting rate of not more than
$1
; and
(B)by striking
$45 per ton
and all that follows through the period and
inserting $20 per dry ton for a period of 4 years.
.
(d)Section 9011(f) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8111(f)) is amended to read as
follows:
(f)
(1)Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $75,000,000 for each of fiscal
years 2013 through 2017, of which not more than $15,000,000 for each fiscal
year may be used for providing assistance with collection, harvest, storage,
and transportation under subsection (d).
(2)In addition to any other funds made available to carry
out this section, there are authorized to be appropriated to carry out this
section $75,000,000 for each of fiscal years 2013 through
2017.
.
(e)Conforming
amendments; technical corrections
(1)Definition of
eligible landSection
9011(a)(5)(B)(ii) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8111(a)(5)(B)(ii)) is amended by inserting (7 U.S.C. 8701 et
seq.)
after 2008
.
(2)Establishment
and purposeSection
9011(b)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8111(b)(2)) is amended by inserting the
before
collection
.
(3)Socially
disadvantaged farmers and ranchersSection 9011(c)(2)(B)(v)(II) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)(II)) is
amended by striking ranchers
and all that follows through the
semicolon and inserting ranchers;
.
(4)Limitation on
assistance for BCAP contract acreageSection 9011(d)(3) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8111(d)(3)) is amended by inserting
an
before annual
.
11.Forest biomass
for energySection 9012(d) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8112(d)) is
amended by striking 2012
and inserting
2017
.
12.Community wood
energy programSection 9013(e)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(e)) is
amended by striking 2012
and inserting
2017
.